Meanwhile, Filene's bankruptcy estate and its co-defendant, Retail Ventures Inc,. will be forced to pay the hefty settlement by the end of the month, and will be banned from selling Fendi merchandise without written permission, according to WWD.

And though Burke tells WWD that Ashley Reed had the allegedly fake products "manufactured in China, shipped to Italy, and transshipped to the U.S. with fake invoices using fake business cards," the importer's lawyer Gerard Dunne is denying the claims.

"The court found six bags that were counterfeit over thousands sold over the years," Dunne says.

"The goods are gray-market goods -- legitimate goods sold outside of the U.S. and shipped here. Most of our goods are from duty free shops and Fendi outlets in Italy. We don't believe they were counterfeit."